The Million Dollar Question:

What’s Going On With Toronto’s Real Estate Market?

Credit: Dash Dixon for The Capital

I hope everyone is doing well and that you’re all safe, happy and healthy. Over the past month or so I've had great conversations with other top agents, investors and potential buyers/ sellers. What are we all talking about? What's happening in the housing market right now and what we think will come of it. Here are The Facts, The Key Takeaway and my thoughts on What’s To Come:

The Facts

I’ve pulled data from the three main regions of Toronto where my clients buy and sell (C01, C08 & E01). Here’s where those regions are and what their recent MLS activity is:

Credit: Pierre Carapetian

Credit: Levi Dy, Forest Hill Real Estate

The Key Takeaway

There’s still activity in the market! Listings are understandably far fewer than they would be without COVID-19. The freehold listings (i.e. listings with no condo/townhouse boards) that are coming to market are selling in all regions of the city and in some cases they’re selling with multiple offers. 

In Toronto’s two largest sectors (C01 and C08) 25-36% of condo listings are selling. Some condo boards are not allowing showings, so while transactions are still occurring, tighter restrictions are limiting sales.

What’s To Come?

Of course nobody has a crystal ball but I will share some insights from conversations I’ve had with other top agents, office managers and real estate professionals. Before COVID-19 made its affect on the Toronto market in mid-March, we were having a tremendously busy start to 2020. Some experts felt it was even stronger than the boom of 2016 and 2017 — and I tend to agree!

The cause of this recent frenzy was the lack of inventory that began last fall and continued into this year. Springtime (especially mid-March through April) is typically the busiest time for Toronto real estate. This year's spring market has been put on pause because of the pandemic, further increasing the pent-up demand and lack of inventory. 

Yes, the world economy and more specifically Toronto's economy will suffer. Prices have dipped since mid-March because people who bought homes in a hot market were then forced to sell when the buyer pool was diminished. But, that period has ended and the demand is building again!

There is a common consensus among Toronto real estate insiders that the city's strong demand for housing will essentially cancel out the poor economy and we will see prices stabilize toward the end of this pandemic. 

Don't bet against the city's housing market. When the smoke clears and the dust settles we could very well see a strength and intensity that our housing market has never seen before. If you have any further questions, feel free to reach out! - Andrew Dunn